NORCAL Group - FD Insurance

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FD Insurance Acquisition: Frequently Asked Questions

NORCAL Mutual, one of the most trusted names in medical professional liability insurance, has completed the acquisition of FD Insurance (FD), the largest domiciled medical malpractice provider for physicians and surgeons in Florida, on Dec. 31, 2015. FD Insurance is now part of the NORCAL Group of companies.

Q. What is the reason for the acquisition?

A. There is great synergy between FD Insurance and NORCAL. The companies have a shared commitment to always putting the best interests of policyholders first. For FD Insurance, it provides the opportunity to join a national company with broad resources and innovative products that will bring additional value to their policyholders. It’s also an opportunity for NORCAL to continue its national expansion and establish Jacksonville, Florida, as its Southeast hub.

Q. Can you tell me more about NORCAL?

A. Since its founding in 1975 NORCAL Mutual has been a policyholder-owned and physician-directed company. For over 40 years, the company has been committed to offering innovative products and services at the lowest responsible cost, and has served as a staunch advocate for physicians’ rights and the practice of good medicine. NORCAL holds a financial strength rating of “A” (Excellent) from A.M. Best, which NORCAL has held for 32 consecutive years.

Q. How does this benefit FD Insurance Policyholders?

A. There are many benefits for FD policyholders:

  • NORCAL’s financial stability has earned an “A” (Excellent) rating from A.M. Best for 32 consecutive years. We also intend to pursue an A.M. Best rating for FD Insurance in the near future.
  • Providing industry leading risk management services is a hallmark of NORCAL — offering numerous risk management materials, including exclusive CME opportunities through NORCAL’s award winning Claims RX publication, and both online and live CME events.
  • As a company with both a national footprint and local expertise, NORCAL provides 24/7 access to claims and risk management professionals to ensure we are available when policyholders need us most.
  • NORCAL is a mutually held company owned by our policyholders. When you become a NORCAL Mutual insured, additional benefits may include the right to vote in the election of the Board of Directors and the opportunity to receive dividends, if declared.

Q. Will FD Insurance continue to exist as a separate company?

A. FD Insurance is now part of the NORCAL Group of companies, but will continue to operate as a separate entity for a period of time. The companies are working to integrate operations to provide a seamless experience for all insureds. The transition of FD policyholders to NORCAL Mutual is planned to begin in July 2016 upon renewal.

Q. Will FD policyholders receive a new NORCAL policy?

A. Yes. Our goal is to begin transitioning FD policyholders to NORCAL Mutual with renewals beginning in July 2016. In the interim, current FD policies will be renewed with no changes to coverage.

Q. How will the acquisition affect the industry ratings of NORCAL?

A. A.M. Best has noted that the acquisition will have no impact on NORCAL’s rating.

Q. Will NORCAL’s rating be extended to FD Insurance?

A. The rating is not automatically extended, however we intend to pursue an A.M. Best rating for FD Insurance in the near future.

Q. Will I have a change in premium?

A. FD policy premium rates will not change as a result of the acquisition. As always, individual premium rates will be reviewed annually upon renewal.

Q. Will I be eligible for dividends?

A. Once your policy has been transitioned to NORCAL Mutual, you may become eligible to receive dividends, if declared.

Q. How does this change my services/contacts?

A. You will continue to be supported by your same FD service team. Now as part of NORCAL, this team has many more resources and broad expertise to draw from to provide enhanced claims, customer service and risk management services.

Q. Can I keep my current agent?

A. Yes. NORCAL Mutual works with a network of dedicated agents, many of whom also represent FD Insurance. Any changes to our agent network will be communicated.

Q. If I move my practice to another state can I receive coverage from NORCAL?

A. The NORCAL Group of companies writes in more than 30 states and the District of Columbia, and can provide coverage if you are moving to another NORCAL state or practice in multiple NORCAL states. This is just one of the benefits of being part of a national carrier like NORCAL. Please contact us to learn more about options, coverage terms and rates.

Q. I have an open claim, what happens now?

A. Everything stays the same. Open claims will remain in the trusted hands of the claims team you have been assigned. Any changes to this will be communicated well in advance.

Q. Who do I contact for Risk Management, Claims or Underwriting assistance/questions?

A. You will continue to work directly with your FD service teams. As the integration of FD and NORCAL progresses and policyholders transition to a NORCAL policy, you will be notified if there are any changes to your service team.

Q. Will this change how FD Insurance defends policyholders?

A. No. NORCAL and FD have a shared commitment to vigorously defending all non-meritorious claims to protect your professional reputation and provide you peace of mind.

Q. Will this change the defense firms that are currently representing insureds in active cases?

A. No. Policyholders will continue to be served by highly skilled claims professionals and represented by the defense counsel currently retained on their behalf for cases already in progress.

Q. Will the company name change?

A. Over time there will be a brand transition from FD to NORCAL, which includes changing to the NORCAL brand and logo.